Jan. 04, 2021- Bitech.pro cryptocurrency market outlook.
Happy New Year everyone, I hope you are having great holidays and enjoying the Bitcoin rally. Today we have a look at the cryptocurrency markets.
Let’s start with a daily chart. Bitcoin doesn’t show any weakness just yet. Macro trends are extremely strong.
After our last review price went straight to $35000. Price of $BTC doubled in just 23 days. We have mentioned that such an impressive move after short consolidation below $20k isn’t sustainable and could indicate potential reversal in near future. Likely the future has come and we’ve observed reversal. And today’s daily close… Well, I doubt that today’s daily close will be pretty for bulls. During holidays and weekends the price was pushing up on relatively low volume that’s another sign of reversal.
Today we have been buying puts at Bitech’s OptiPro module and that worked out pretty well. Moreover, we’ve hedged our portfolio in full (went to fiat). For now we will be fully hedged/in fiat until price will make a close above $34800 high, either after correction is done.
If this is a correction, where are we buying back? One may ask.
Frankly, there is no reliable support on the weekly chart till $18–20k. Also, it will be support-resistance flip (S/R flip), which make a lot of sense since price haven’t tested ~20k zone.
Now we will take a look a $BTC CME chart. There is a couple of unfilled gaps. CME gaps tend to work out very well historically.
As you can see, CME gaps suggests supports at $24k and at $18.5k. The $18.5k gap lined up with 0.382 Fibonacci retracement level.
Conclusion: We likely entered correction phase on $BTC. For now we will stay in fiat, unless price manage to close above recent highs. Besides hedging, we will be mostly buying puts at Bitech’s binary options module and occasionally calls. FOMO is here, every popular media is highlighting Bitcoin run; so it could indicate that is current swing is over. Market is overheated for sure.